Economy: Alan Walters diary (Economic forecasts) [Sure 16 percent interest rate is too high][released 2012]

Document type:	Declassified documents
Source:	Walters MSS (Churchill Archives Centre): WTRS 3/1/1
Editorial comments:	Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking:	Major
Word count:	85
Themes:	Monetary policy, Public spending & borrowing

Friday 9th October 1981

Burns, Middleton, Ridley re Econ forecasts

(a) How to get off the £M3 targets - they are bound to run at 15% - mostly due to new Bank competition.

(b) Interest rates - the final twist to 16%

[Different pen used from this point] Reflection - I am SURE this 16% is far too high. We are in danger of squeezing just like we did in 1980 but now there is the excuse that we do not have statistics of M3 etc. What can I say?